What you need to secure a business loan in Singapore
Applying for a business loan in Singapore? Get up to speed on everything you need to prepare first.
Applying for a business loan in Singapore is quick and convenient, but you’ll still need to plan ahead before applying to maximise your chances of qualifying. Here are some great tips to help you prepare your loan application.
- Research your business loan options.
Singapore-based SMEs can choose from a variety of business loan options. If you’re looking to boost your working capital, DBS offers unsecured loans such as its Working Capital Loan or Business Term Loan that could suit your needs. Other secured loans are available for other different purposes as well, such as equipment financing, buying a commercial property, and more. It’s important to read up on each available business loan option and determine which one is most suitable for you.
- Keep your business records in order.
Keeping your documents – such as your bank statements and accounts – in order is a must. This demonstrates transparency and gives a clear picture of your company’s financial standing, which the bank will look closely at when assessing your loan application. Ensure your company has systems in place to keep everything organised – instead of trying to handle your own accounts, consider hiring an accountant or using an online platform such as Xero or Financio to keep your accounts organised and up-to-date.
- Maintain good credit standing.
When applying for a business loan in Singapore, banks will almost certainly look at your credit history. Before applying for a loan, it is essential to maintain good credit – this means paying all your bills, and avoiding foreclosure, bankruptcy, litigation, winding up, or even submitting multiple loan applications all at once. Demonstrating good credit can go a long way in helping you secure a business loan.
- Ensure you are able to repay your loan.
When applying for a business loan, the bank will assess your ability to repay your loan. This means you should be able to demonstrate that your cash flow is sound, and also secure a guarantor on your loan. You will need to prepare your income tax assessment for submission, as well as records of any existing debt you have. You’ll also need the NRIC and income tax assessment of your guarantor, where required, for submission.
- Put together all your paperwork in advance
Applying for a business loan in Singapore is easy – you can apply online for a DBS Business Loan in as little as five minutes. To ensure a seamless application process, however, be sure to have all your supporting documents with you at your time of application. This includes copies of your NRIC/passport, your personal income tax assessment, your company’s bank statements and financial statements, as well as your guarantor’s identification documents and income tax assessment.
Apply online for a DBS Business Loan today.
Need fast small business loans? Apply for DBS Quick Finance now!
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